RISK EVALUATION AND MANAGEMENT STRATEGIES

dawood hercules corp ltd

S. NO Risk Source Likelihood Key Source of Risk

loan default ,credit 7/10 , 1 is low and

Credit Risk loan portfolio
concentration 10 shows the high

market
2 Market Risk volatility ,interest rate 6/10 chances investment portfolio
changes

fraud ,cybersecurity
internal control ,IT
3 operational Risk breaches ,system 8/10 chances
infrastructure
failure

imadequate liquidity ,
4 liquidity risk deposits withdrawal
medium liquidity mgt

non compliance
5 Regulatory risk regulatory change
Medium regulatory requirements

negative
customer services ,media
6 reputation risk publicity ,customer Medium
mgt
compliance

competition,business
7 strategic risk model disruption
6/10 chances market competition

anti money
8 cimpliance risk laundering,know your 7/0 chances rwgulatory requirements
customer
 UNITED BANK LIMITED
S. NO Risk Category Source Likelihood Key Source of Risk

Sovereign credit risk on

Credit Risk External Low exposure to Public Sector
Enterprises (PSEs)

Counterparty credit risk

on exposure to Private
External High
sector advances and
Interbank limits

2
 Risk associated with
fluctuations in interest
rates, foreign currency
Market Risk External High
rates, credit spreads,
equity prices, and
commodity prices

3
 Risk of inadequate or
failed internal processes
Operational Risk Internal & External Low-Medium
and losses caused by
external events

4
 Risk arising due to
unauthorized or
Internal & External Low inappropriate employee
activity and failure to
adhere to staff policies

Risk arising from non-

compliance with statutory
Compliance Risk Internal & External Medium
or regulatory provisions
applicable to the company

6
 Risks emanating from the
nature of the company's
business, from macro
Liquidity Risk Internal & External Medium
factors exogenous to the
company, and internal
policies

Undertaking higher risks in

view of more volatile and
Capital Adequacy Risk Internal & External Medium-High
competitive financial
markets

8
 Improper implementation
of decisions or lack of
Strategic Risk Internal & External Medium responsiveness to evolving
industry, economic, or
technological changes

9
 Risk arising from non-
availability of IT systems
Technological Risk Internal & External High
and disruptions due to
Cyber threats

10
 Risk arising from any
action or inaction
perceived by any
stakeholder to be
Reputational Risk Internal & External Low
inappropriate, unethical,
or inconsistent with the
company’s values and
beliefs

11

Risk arising from the

failure to comply with
Shariah rules and
Shariah Non-
Internal Low principles determined by
Compliance Risk
Shariah Board of the
company and the
Regulator

12

Here's a risk profile table for National Refinery Limited:

 S. NO Risk Source Likelihood Key Source of Risk
Fluctuations in Crude Dependency on Crude Oil
1 Market High
Oil Prices Costs

Regulatory Regulatory Changes in Environmental

2 Medium
Compliance Environment Regulations

3 Equipment Failure Internal Low Aging Infrastructure

Supply Chain Logistics Issues, Supplier

4 External Medium
Disruptions Reliability
Increasing Competition
5 Market Competition Industry High
from Other Refineries
Technological Advancements in Refining
6 External Medium
Obsolescence Technology
Recessionary Trends
7 Economic Downturn Macroeconomic Medium
Affecting Demand

Reference: National Refinery Limited Annual Report 2023, available on the company's official website or through regulatory bo

meezan bank ltd

S. NO Risk Source Likelihood Key Source of Risk
1 Credit Risk Market High Non-performing Loans

2 Regulatory
Compliance
Regulatory
Environment
Medium
Changing Banking
Regulations
Fluctuations in Interest
3 Interest Rate Risk Market Medium
Rates
Data Breaches, Cyber
4 Cybersecurity Threats External High
Attacks
Volatility in Financial
5 Market Risk Market Medium
Markets
Inability to Meet Short-
6 Liquidity Risk Market Medium
term Obligations
System Failures, Human
7 Operational Risk Internal High
Errors

sapphire textile mills ltd

S. NO Risk Category Source Likelihood Key Source of Risk
 Sovereign credit risk on
Credit Risk External Low exposure to Public Sector
Enterprises (PSEs)
1
Counterparty credit risk
on exposure to private
External High
sector advances and
interbank limits
2

Risks from interest rates,

foreign currency rates,
Market Risk External High credit spreads, equity
prices, and commodity
prices
3

Risks from operational

Operational Risk Internal and External Low-Medium failures and external
events
4

Risks from unauthorized

Internal and External Low activities and policy
breaches
5

Risks from non-

Compliance Risk Internal and External Medium compliance with statutory
or regulatory provisions
6
Risks from internal policies
Liquidity Risk Internal and External Medium and macroeconomic
7 factors

Risks related to capital

Capital Adequacy Risk Internal and External Medium-High adequacy amidst market
8 volatility

Risks from strategic

Strategic Risk Internal and External Medium decisions and industry
9 changes

Risks from IT system

Technological Risk Internal and External High failures and cybersecurity
threats
10
Risks from stakeholder
Reputational Risk Internal and External Low perception of ethical or
11 operational issues

Risks from non-

Shariah Non-
Internal Low compliance with Shariah
Compliance Risk
12 principles
 TANDLIANWALA SUGAR MILLS LIMITE
S. NO Risk Category Source Likelihood Key Source of Risk

Sovereign credit risk on

Credit Risk External Low exposure to Public Sector
Enterprises (PSEs)

Counterparty credit risk

on exposure to Private
External High
Sector Advances and
Interbank limits

2
 Risk associated with
fluctuations in interest
rates, foreign currency
Market Risk External High
rates, credit spreads,
equity prices, and
commodity prices

3
 Risk of inadequate or
failed internal processes
Operational Risk Internal & External Low-Medium
and losses caused by
external events

Risk arising due to

unauthorized or
Internal & External Low inappropriate employee
activity and failure to
adhere to staff policies

5
 Risk arising from non-
compliance with statutory
Compliance Risk Internal & External Medium
or regulatory provisions
applicable to the company
6

Risks emanating from

nature of the company's
business, from the macro
Liquidity Risk Internal & External Medium factors exogenous to the
company as well as from
internal financing and
operational policies

7
 Undertaking higher risks in
view of more volatile and
Capital Adequacy Risk Internal & External Medium-High
competitive financial
markets

Improper implementation
of decisions or lack of
Strategic Risk Internal & External Medium responsiveness to evolving
industry, economic, or
technological changes

9
 Risk arising from non-
availability of IT systems
Technological Risk Internal & External High
and disruptions due to
Cyber threats

10

Risk arising from any

action or inaction
perceived by any
stakeholder to be
Reputational Risk Internal & External Low
inappropriate, unethical,
or inconsistent with the
company’s values and
beliefs

11
 Risk arising from the
failure to comply with
Shariah rules and
Shariah Non-
Internal Low principles determined by
Compliance Risk
Shariah Board of the
company and the
Regulator

12

family fertilizer co ltd

S. NO Risk Source Likelihood Key Source of Risk

Natural disasters, supplier

supply chain
insolvency,aging
1 operational risk disruption,equipment medium
machinery lack of
failure
maintenance

volatile currency
Exchange rate market ,Customer
2 financial risk fluctuations, credit risk
medium ,low
defaults, poor credit
management

Emerging trends, shifting

competition ,Changes
demographics,New
3 market risk in consumer high
entrants, aggressive
preferences
competitors

changes in food safety New laws, stricter

4 regulatory risk regulations
medium
compliance standards

5 reputational risk food safety incident high contaimination recall

6 technological risk Cybersecurity threats medium data breaches hacking

Extreme weather,
7 enviromental change Climate change medium changing agricultural
patterns

PAKISTAN OILFIELDS LIM

Below is a table that summarizes the risk profile of the company based on the "Annual Report 2023" with quantitative and qua

S. NO Risk Source Likelihood Key Source of Risk

 Annual Report 2023, p. International crude oil
1 Oil Price Volatility High
1 prices

Incorrect selection of
Annual Report 2023, p.
2 Exploration Risk Medium exploration acreage, poor
1
quality seismic data, etc.

Well blowouts, fire

Annual Report 2023, p.
3 Drilling Risk High hazards, personal injury,
1
etc.

Reservoir
Underperformance of Annual Report 2023, p.
4 Medium underperformance,
Oil and Gas Fields 1
production factors

Procurement Planning Annual Report 2023, p. Vulnerabilities in

5 Medium
Related Risk 1 procurement process

Annual Report 2023, p.

6 Liquidity Risk Medium Financial liabilities
2-3
Annual Report 2023, p.
7 Credit Risk Low Counterparty default
4
Annual Report 2023, p. Foreign exchange
8 Currency Risk Medium
3 fluctuations

Annual Report 2023, p. Market interest rate

9 Interest Rate Risk Medium
2-3 changes

Annual Report 2023, p. Market price fluctuations

10 Price Risk Medium
5 of financial instruments

References:

Annual Report 2023, pages as specified.

pakistan refinery ltd

S. NO Risk Category Source Likelihood Key Source of Risk

Sovereign credit risk on

Credit Risk External Low exposure to Public Sector
Enterprises (PSEs)
1
Counterparty credit risk
on exposure to private
External High
sector advances and
interbank limits
2
 Risks from interest rate,
foreign currency, equity,
Market Risk External High
and commodity price
fluctuations
3
Risks from internal
Operational Risk Internal and External Low to Medium process failures and
4 external events

Risks from unauthorized

Internal and External Low activities and policy
5 breaches

Risks from non-

Compliance Risk Internal and External Medium compliance with statutory
or regulatory provisions
6

Risks from internal

Liquidity Risk Internal and External Medium financing policies and
external economic factors
7
Risks from volatile
financial markets and
Capital Adequacy Risk Internal and External Medium to High
regulatory capital
requirements
8
Risks from strategic
Strategic Risk Internal and External Medium decision failures and
9 industry changes

Risks from IT system

Technological Risk Internal and External High
failures and cyber threats
10
Risks from stakeholder
Reputational Risk Internal and External Low perception of ethical or
11 operational failures

Risks from non-

Shariah Non-
Internal Low compliance with Shariah
Compliance
12 principles

national food ltd

S. NO Risk Source Likelihood Key Source of Risk

Natural disasters, supplier

supply chain
insolvency,aging
1 operational risk disruption,equipment medium
machinery lack of
failure
maintenance
 volatile currency
Exchange rate market ,Customer
2 financial risk fluctuations, credit risk
medium ,low
defaults, poor credit
management

Emerging trends, shifting

competition ,Changes
demographics,New
3 market risk in consumer high
entrants, aggressive
preferences
competitors

changes in food safety New laws, stricter

4 regulatory risk regulations
medium
compliance standards

5 reputational risk food safety incident high contaimination recall

6 technological risk Cybersecurity threats medium data breaches hacking

Extreme weather,
7 enviromental change Climate change medium changing agricultural
patterns
STRATEGIES
d

Mitigating Strategy Impacting Area

capital adequacy ,loan

diversified lending ,credit risk assesment
losses

assets liability mgt ,hedging investment income

risk mgt framework ,staff training financial loss ,reputation

liquidity ratio ,deposit

cash flow monitoring ,contigency planning
stability

compliance monitoring ,regulatory reputation ,legal

engagement compliance

brand
crisis mgt ,customer engagement reputation ,customer
loyalty

market share ,revenue

business strategy ,innovation
growth

reputation ,legal
compliance monitoring ,staff training
compliance
NK LIMITED
Mitigation Strategies Impacting Area

- Oversight through sub-committee

“Board Risk Management Committee” and
management committee “Risk
Management Committee (RMC)”. - Public
sector advances generally secured by
sovereign guarantees or equivalent from Financial Capital
the Government. - Certain PSEs have well-
defined cash flow streams and business
models, allowing lending to be secured
through collaterals other than
government guarantees.

- Board-approved Credit Risk Policy and

Credit Procedural Manual aligned with
internal policy, State Bank of Pakistan’s
Prudential Regulations, and industry best
practices. - Utilization of Risk Assessment
and Management System (RAMS)
employing risk rating models for credit
risk ratings. - Continuous monitoring of
exposure limits linked to counterparty Financial Capital
credit ratings. - Concentration risk
management through exposure limits and
risk profile benchmarks. - Utilization of
automated systems for watch-list
categorization and identification of loan
quality deterioration. - Specialized team
conducts technology assessments of
obligors’ assets and projects.
- Oversight through Board and sub-
committee “Board Risk Management
Committee” and management committee
“Asset & Liability Committee (ALCO)”. -
Implementation of a comprehensive
structure to ensure compliance with
qualitative and quantitative tolerance for Financial Capital
market risk. - Utilization of various risk
management tools such as Value at Risk
methodologies, sensitivity measures, and
stress testing. - Periodic repricing gap
analysis and extensive stress testing to
capture and report market risk aspects.
- Oversight through Board and sub-
committee “Board Risk Management
Committee” and management committee
“Risk Management Committee (RMC)”. -
Board-approved Operational Risk
Management (ORM) Policy and detailed
procedures. - Implementation of
adequate internal controls to maintain
operational risk at appropriate levels. - Financial Capital
Risk assessment and monitoring through
Key Risk Indicators (KRIs) and Risk and
Control Self-Assessment (RCSA). -
Implementation of Business Continuity
Policy and Plan for uninterrupted services.
- Testing of disaster recovery and IT
disaster recovery plans with insurance
coverages.
- Oversight by Board and sub-committees
such as “Human Resource and
Remuneration Committee” and
management committees of “Human
Resource Committee” and “Central
Human and Intellectual
Administrative Action Committee”. -
Capital
Implementation of recruitment screening,
staff engagement, and development
programs with whistleblower
mechanisms. - Provision of insurance
coverages for fraud and fidelity incidents.

- Independent compliance group ensuring

compliance with specific regulatory,
statutory, and internal requirements. - Financial Capital
Implementation of Compliance Policies
and procedures.
- Oversight through Board and sub-
committee “Board Risk Management
Committee” and management committee
“Asset & Liability Committee (ALCO)”. -
Monitoring of exposures against ALM
triggers and limits. - Detailed Recovery Financial Capital
Plan for financial crisis situations. -
Regular liquidity stress tests and maturity
gap analysis. - Maintenance of marketable
securities portfolio for liquidity stress
situations.

- Oversight through board and sub-

committee “Board Risk Management
Committee (BRMC)” and management
committees “Risk Management
Committee (RMC)” and “Asset & Liability
Committee (ALCO)”. - Regular assessment Financial Capital
of capital adequacy and stress tests. -
Updating and reviewing of Internal Capital
Adequacy Assessment Process (ICAAP)
Framework. - Focus on sufficient profit
retention.
- Oversight through Board and sub-
committee “Strategic Planning &
Monitoring Committee” and management
committees “Management Committee
(MANCO)”, “Risk Management Committee
(RMC)”, “Compliance Committee (CC)”,
and “Asset & Liability Committee (ALCO)”. Financial Capital
- Annual review of 10-year Rolling
strategic plan and operational plan
considering economic and industry
dynamics. - Constant monitoring of
events' impact on business direction and
forecasted results.
- Oversight through Board and sub-
committees “E-Vision Committee” and “IT
Steering Committee (ITSC)”. - IT and
Information Security planning integrated
into the company’s strategic and
operational planning process. - Systems
audits, IT Security & Risk Assessments
performed for systems before and after
deployment into production environment.
Financial Capital
- Ongoing investments in Technology and
Processes for customer data protection. -
Utilization of Security Operation Center
(SOC) for proactive monitoring and
response to cyber threats. - Conducting
regular Penetration Testing and
Vulnerability Assessment exercises. -
Continuous awareness programs for
Customers and Staff about cyber threats.
 - Oversight through board and sub-
committee “Board Risk Management
Committee” and management committee
“Risk Management Committee (RMC)”. -
Implementation of a formal customer
Social Relational Capital
grievance redressal policy and efficient
communications among stakeholders. -
Implementation of policies and
procedures for securing digital payments
and protecting customers’ data.

- Oversight through Board and

subcommittee “Board Risk Management
Committee” and management
committees “Management Committee
(MANCO)” and “Risk Management Financial Capital
Committee (RMC)”. - Implementation of
policies and procedures duly reviewed by
Shariah Board, transactions review, and
periodic External Shariah Audit.

finery Limited:
 Mitigating Strategy Impacting Area
Cost of Goods Sold, Profit
Hedging, Diversification of Suppliers
Margins

Operational Efficiency,
Regular Compliance Audits, Legal Counsel
Reputation

Regular Maintenance, Equipment Production Efficiency,

Upgrades Safety
Diversification of Suppliers, Supply Chain Production Efficiency,
Mapping Delivery Times

Process Optimization, Cost Efficiency Market Share, Profitability

Operational Efficiency,
Investment in Technology, R&D
Product Quality
Cost Reduction Measures, Diversification
Sales Revenue, Profitability
of Product Portfolio

l website or through regulatory bodies such as the Securities and Exchange Commission of Pakistan (SECP) or Pakistan Stock Exchange (PSX

Mitigating Strategy Impacting Area

Stringent Credit Assessment,
Asset Quality, Profitability
Diversification of Loan Portfolio
Operational Efficiency,
Regular Compliance Audits, Legal Counsel
Reputation
Net Interest Income, Profit
Asset-Liability Management, Hedging
Margins
Advanced Security Measures, Employee
Customer Trust, Reputation
Training
Portfolio Diversification, Risk Management Investment Income, Capital
Tools Adequacy
Liquidity Management, Contingency
Solvency, Reputation
Planning
Robust Internal Controls, Disaster
Efficiency, Reputation
Recovery Plans

xtile mills ltd

Mitigating Factors Impacting Area
- Investments secured by sovereign
guarantees or collaterals other than GoP
Financial capital
guarantee<br>- Risk Management
Committee oversight

- Board-approved Credit Risk Policy and

Prudential Regulations compliance<br>-
Financial capital
Risk Assessment and Management System
(RAMS)

- Oversight by Board Risk Management

Committee (BRMC) and Asset & Liability
Committee (ALCO)<br>- Utilization of Financial capital
advanced risk management tools (VaR,
stress testing)

- Board and Risk Management Committee

(RMC) oversight<br>- Comprehensive Financial capital
ORM Policy and procedures

- Strong internal controls and risk

Human and intellectual
monitoring<br>- Regular risk assessments
capital
and Business Continuity Plan

- Independent compliance group and

compliance policies<br>- Regular audits Financial capital
and adherence to regulatory standards

- ALCO oversight and ALM policy

adherence<br>- Liquidity stress tests and Financial capital
maturity gap analysis

- BRMC oversight and ICAAP

Framework<br>- Stress testing and profit Financial capital
retention strategies

- Strategic Planning & Monitoring

Committee oversight<br>- Annual Financial capital
strategic plan review and adaptation

- Oversight by IT Steering Committee and

E-Vision Committee<br>- IT security
Financial capital
audits, SOC monitoring, and cyber threat
countermeasures

- Board RM Committee and RMC

oversight<br>- Customer grievance policy Social relational capital
and digital payment security

- Shariah Board oversight and compliance

policies<br>- External Shariah audits and Financial capital
transaction reviews
GAR MILLS LIMITED
Mitigation Strategies Impacting Area

- Oversight through sub-committee

"Board Risk Management Committee" and
"Risk Management Committee (RMC)". -
Public sector advances typically secured
by sovereign guarantees or equivalent
Financial Capital
from the Government. - Certain PSEs have
well-defined cash flow streams and
business models, allowing lending to be
secured through collaterals other than
government guarantees.

- Board-approved Credit Risk Policy and

Credit Procedural Manual in compliance
with internal policy, State Bank of
Pakistan’s Prudential Regulations, and
industry best practices. - Utilization of Risk
Assessment and Management System
(RAMS) employing risk rating models for
credit risk ratings. - Continuous
monitoring of exposure limits linked to
Financial Capital
counterparty credit ratings. -
Concentration risk management through
exposure limits and risk profile
benchmarks. - Utilization of automated
systems for watch-list categorization and
identification of loan quality deterioration.
- Specialized team conducts technology
assessments of obligors’ assets and
projects.
- Oversight through Board and sub-
committee "Board Risk Management
Committee" and "Asset & Liability
Committee (ALCO)". - Comprehensive
structure is in place aimed at ensuring
that the company does not exceed its
qualitative and quantitative tolerance for
market risk. - Balanced approach towards
risk-taking in the market risk area while
keeping exposures within the defined risk
acceptance criteria. - Tools like Value at Financial Capital
Risk methodologies, sensitivity measures,
intraday exposure limits, notional limits,
and loss triggers are monitored at a
detailed portfolio level. - Periodic repricing
gap analysis to re-profile the earning asset
mix in accordance with interest rate
expectations. - Extensive stress testing is
performed to capture and report the
multi-dimensional aspects of market risk
using automated solutions.
- Oversight kept through Board and its
sub-committee “Board Risk Management
Committee” as well as through
management committee – “Risk
Management Committee (RMC)”. -
Implementation of Board-approved
Operational Risk Management (ORM)
Policy and detailed procedures. -
Adequate system of internal controls
designed to keep operational risk at
appropriate levels. - Risk assessment of
each operational risk incident. -
Monitoring of risk through Key Risk Financial Capital
Indicators (KRIs) and Risk and Control Self-
Assessment (RCSA) for material processes
of the company. - Implementation of
Business Continuity Policy and Plan driven
towards ensuring provision of
uninterrupted operations in case of any
unforeseen emergency and/or natural
calamities. . - Disaster recovery and
evacuation plans testing. - IT disaster
recovery plans testing on an ongoing
basis. - Insurance coverages are in place
for theft and damage to physical assets.

- Board of Directors’ oversight along with

its sub-committees “Human Resource and
Remuneration Committee” as well as
through management committees of
“Human Resource Committee” and
“Central Administrative Action
Committee”. - Recruitment, pre-
employment screening, employer Human and Intellectual
feedback, and exit interviews. - Proactive Capital
staff engagement. - Strong staff
development programs in place
combining e-learning, in-house, and
external training programs. - Insurance
coverages are held for fraud and fidelity
incidents. - Whistleblowing mechanism is
in place.
- Independent compliance group to
ensure compliance with specific
regulatory, statutory, and internal Financial Capital
requirements. - Compliance Policies and
procedures are in place

- Oversight kept through Board and its

sub-committee “Board Risk Management
Committee” as well as through
management committee – “Asset &
Liability Committee (ALCO)”. - ALCO
oversees the activities related to liquidity
management. - Exposures are monitored
by ALCO against well-defined ALM triggers
and limits. - Detailed Recovery Plan is in
place which highlights the strategy and
critical tools for effective monitoring,
Financial Capital
escalation, planning, and execution of
recovery actions in the event of a financial
crisis situation. - The company regularly
performs liquidity stress tests as part of its
liquidity monitoring activities. - Periodic
maturity gap analysis is performed to
keep asset and liability mismatch within
acceptable limits. - Maintenance of
appropriate marketable securities
portfolio that can be realized in the event
of a liquidity stress.
- Oversight kept through board and its
sub-committee “Board Risk Management
Committee” (BRMC) as well as through
management committees. - The company
assesses capital adequacy on a regular
basis, including historical and future
capital positioning review. - Stress tests on
Financial Capital
capital adequacy in line with SBP
requirements are performed on a regular
basis and results are reported to BRMC /
BoD. - The Internal Capital Adequacy
Assessment Process (ICAAP) Framework is
updated and reviewed annually. - Focus
on sufficient profit retention.

- Oversight kept through Board and its

sub-committee “Strategic Planning &
Monitoring Committee” as well as through
Management Committees –
“Management Committee” (MANCO),
“Risk Management Committee” (RMC),
“Compliance Committee” (CC), and “Asset
& Liability Committee” (ALCO). - The
company reviews its rolling strategic plan Financial Capital
on an annual basis along with the
operational plan to account for the
evolving economic and business
dynamics, duly considering peer
companies. - The impact of events on the
future direction of the business and
forecasted results are constantly
monitored and quantified.
- Oversight kept through Board and its
sub-committees like “E-Vision Committee”
and “IT Steering Committee” (ITSC). - IT
and Information Security planning is
conducted as part of the company’s
strategic and operational planning
process. - Systems audits, IT Security &
Risk Assessments are performed for
systems before and after deployment into
the production environment. - Significant
ongoing investments in Technology and
Financial Capital
Processes to protect customer data as
part of the information security posture. -
Security Operation Center (SOC) utilizes a
combination of People, Process, and
Technology to proactively monitor and
respond to cyber threats. -
Countermeasures against cyber threats
include regular Penetration Testing and
Vulnerability Assessment exercises. -
Continuous awareness programs for
Customers and Staff about cyber threats.

- Oversight kept though board and its sub-

committee “Board Risk Management
Committee” as well as through
management committee – “Risk
Management Committee” (RMC). - Formal
customer grievance redressal policy,
including policy and procedures on Social Relational Capital
receiving customer complaints and
resolution mechanism. - Timely and
efficient communications among all
stakeholders. - Policies and procedures in
place for securing digital payments
including protection of customers’ data.
 - Oversight kept through Board and its
sub-committee “Board Risk Management
Committee” as well as through
management committees – “Management
Committee” (MANCO) and “Risk
Financial Capital
Management Committee” (RMC). -
Policies and procedures in place duly
reviewed by Shariah Board. - Review of
transactions by Shariah Compliance. -
Periodic External Shariah Audit.

Mitigating Strategy Impacting Area

Diversify suppliers, establish backup productive

plans,Regular maintenance, investment in inventory ,productive
new technology efficiency

Hedging strategies, currency

revenue profitability,Cash
diversification,Credit checks, insurance,
flow, financial health
diversified customer base

Market research, agile product sales market

development,Competitive pricing, product share ,Revenue, market
differentiation position

Operations, legal
Compliance programs, regular audits
compliance
Stringent quality controls, crisis brand images customer
management plans trust
Robust IT security measures, regular
Data integrity, operations
audits

Sustainable practices, climate-resilient

raw material supply
sourcing

AN OILFIELDS LIMITED
rt 2023" with quantitative and qualitative data. The table includes columns for the risk, source, likelihood, key source of risk, mitigating str

Mitigating Strategy Impacting Area

 Monitoring market trends and using
financial instruments to hedge against Profitability
price fluctuations

Utilizing the latest technologies, hiring

experienced professionals, exploring new Operational performance
opportunities, collaborations

Forming professional teams, strict criteria

Safety and operational
for selecting rigs and services, obtaining
continuity
well insurance

Regular assessments, enhanced recovery Future earnings and

techniques profitability

Robust procurement planning and

Profitability
management processes

Maintaining sufficient cash and

Financial stability
marketable securities
Thorough credit evaluations, diversified
Financial loss prevention
receivables portfolio
Monitoring foreign currency positions,
Financial performance
hedging strategies

Diversifying financial assets and liabilities,

Financial stability
monitoring interest rate movements

Diversifying investment portfolio

Investment performance
according to investment policy

efinery ltd
Mitigating Factors Impacting Area
- Secured lending with sovereign
guarantees or equivalent from
Financial capital
Government<br>- Collateralization of
loans

- Board-approved Credit Risk Policy and

Procedural Manual<br>- RAMS for credit Financial capital
risk assessment
- Oversight by Board and ALCO<br>- Use
of risk management tools like VaR Financial capital
methodologies and stress testing

- ORM Policy and Procedures<br>-

Financial capital
Internal controls, KRIs, RCSA assessments

- Governance oversight<br>- Robust HR Human and intellectual

policies and training programs capital

- Independent compliance oversight<br>-

Financial capital
Comprehensive policies and procedures

- Oversight by Board and ALCO<br>-

Financial capital
Liquidity stress tests, maturity gap analysis

- Oversight by BRMC and RMC<br>-

Financial capital
Regular stress tests and ICAAP framework

- Strategic Planning Committee

oversight<br>- Continuous strategic Financial capital
review and adjustment

- Oversight by IT Steering and E-Vision

Committees<br>- Robust IT security Financial capital
measures

- Board and RMC oversight<br>- Effective

grievance redressal and customer Social relational capital
communication

- Shariah Board oversight and compliance

Financial capital
reviews<br>- External Shariah audits

Mitigating Strategy Impacting Area

Diversify suppliers, establish backup productive

plans,Regular maintenance, investment in inventory ,productive
new technology efficiency
Hedging strategies, currency
revenue profitability,Cash
diversification,Credit checks, insurance,
flow, financial health
diversified customer base

Market research, agile product sales market

development,Competitive pricing, product share ,Revenue, market
differentiation position

Operations, legal
Compliance programs, regular audits
compliance
Stringent quality controls, crisis brand images customer
management plans trust
Robust IT security measures, regular
Data integrity, operations
audits

Sustainable practices, climate-resilient

raw material supply
sourcing
Pakistan Stock Exchange (PSX).
source of risk, mitigating strategy, and impacting area.